Question
The price of Ford shares is $15 at the beginning of 2020. The price goes down to $10 at the end of the first quarter.
The price of Ford shares is $15 at the beginning of 2020. The price goes down to $10 at the end of the first quarter. It goes up to $12 at the end of the second quarter and up again to $18 at the end of the third quarter. At the end of 2020, the price is $15.3. Assume that a dividend of 15 cents is paid at the end of each quarter. What is Fords capital gain in each quarter? What is Fords income yield in each quarter? What is Fords return in each quarter? What is Fords return over 2020 if dividends are re-invested in Fords stock? What is Fords return over 2020 if dividends are not re-invested, but kept as cash?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started